Daily Markets Broadcast May 21, 2019
US indices fell yesterday, with the tech-heavy NAS100 index under-performing on the back of Huawei’s blacklisting by the US as chip suppliers were impacted. Australian shares rallied after the Conservative coalition won the election.
US30USD Daily Chart
Source: OANDA fxTrade
- The US30 index fell for a second consecutive day yesterday on Huawei developments. China stated it would respond accordingly.
- The index is holding above the 100-day moving average at 25,487 while the 55-day moving average caps for now at 26,009.
- US existing home sales probably rose 2.6% m/m in April, according to the latest poll of economists, rebounding from March’s 4.9% decline.
DE30EUR Daily Chart
Source: OANDA fxTrade
- The Germany30 index fell the most in a week yesterday as European chip makers came under pressure following the Huawei developments.
- The 55-day moving average at 11,895 continues to support prices, as it has done on a closing basis since February 8.
- There are no major data releases from either the eurozone or Germany scheduled for today. German factory gate prices rose 0.5% m/m in April, faster than expected, data released yesterday showed.
AU200AUD Monthly Chart
Source: OANDA fxTrade
- Australian shares rose 1.22% yesterday in response to the Conservative coalition winning the weekend election. The coalition’s election manifesto included tax cut promises.
- The index hit the highest level since December 2007 with the September 2007 high of 6.596 the next possible resistance point.
- RBA Governor Lowe is scheduled to speak at 0310mGMT today and his comments will be scrutinised for dovish leanings, or not, given the prospect of tax cuts boosting the economy. A more hawkish bias could stem the AU200 index’s current rally.